Brightline Test – Few More Things
NEW BUILD
As mentioned before, for a New Build to qualify as such the land must be acquired no later than 12 months after it receives CCC. Whilst this may seem straightforward, one must be mindful of the 12 month period for example when acquiring already constructed homes or spec homes as the New Build classification may not be met. Where bare land is acquired the 12 months timeframe is not an issue as the purchaser would have owned the land by the time the CCC is issued for a newly constructed residence.
BRIGHTLINE PERIOD
The date of acquisition of the land determines the length of time that a person must hold the residential land before the property is sold without imposition of income tax, provided that no other land taxing provisions apply.
Property acquired:
July 2022
